How much lower can they go from here…?
Open any pink paper and the ads of discount brokers are ubiquitous. The model is of fairly recent origin. Unlike the full service brokers who give you research and other services, the discount brokers purely give you a platform for executing trades and invest more in technology and less in people. Hence small brokerage costs are able to defray these fixed costs as long as large volumes can be assured. Today, these discount brokers account for a large chunk of F&O volumes and intraday volumes in India. And the trend is only getting sharper by the day. But there are 3 risks to this model… Continue reading